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Money Doesn’t Grow On Trees
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This series “12 Things Every Teenager Needs To Know About Money (And How To Teach Them)” is a community blog experience. This post is only one of the 12 points in the series so to view the other 11, please visit the list of links below.
Money Doesn’t Grow On Trees.
If money grew on trees… we wouldn’t need stimulus packages.
If money grew on trees… being unemployed would be irrelevant.
If money grew on trees… you wouldn’t care what the market did today.
But unfortunately, if money grew on trees… we wouldn’t understand the value of a dollar.
It’s the difference between someone handing you a $20 bill versus going to your first job, working for three hours, and collecting a measly paycheck for $20. I’m sure you grasp that concept, but how do you teach this principle to your teenager? Here are some tips…
- Don’t Provide A “Stimulus Check” – Adults aren’t the only ones looking for a bailout these days…I would bet that the idea of a “stimulus check” originally came from the mind of a teenager! You know the drill: your teen burns through the $20 she had but then gets invited to the movies with some friends, so she comes to you looking for money. While the simple thing to do would be to break out your wallet and give into those “Please Daddy” whines, that action does nothing to benefit your child. Sure they’ll be mad that you didn’t give in, but someday they will thank you for it (like when they are not waiting on the government to bail them out).
- Work Comes Before Play – As a teenager, I had a lawn mowing business and took care of about 10 different yards in the neighborhood. It was good money, and I enjoyed working outside to tan my 13 year-old physique. What I didn’t enjoy though was when my friends were going to hang out, and I had yards to mow. But my dad always reminded me that work comes before play. Do what you have to do, so you can do what you want to do.
- Match Their Efforts – If you’ve got a student saving for a car, college, or some other ‘c’ word, a great way to help them is by offering your own 401k program. For example, if they are saving for a new car, tell them that you will match dollar-for-dollar whatever they save (perhaps with a cap so they don’t end up driving a nicer car than you!). It gives them additional incentive to save but also gives you a chance to pitch in and help out without spoiling them.
This is a guest post from Grant Baldwin, the author of Reality Check, a book about helping students transition into the real world. His new website, BrokePiggy.com, answers questions from teenagers about personal finance, savings, and all things money.
Here are the rest of the articles in the “12 Things Every Teenager Needs To Know About Money (And How To Teach Them)” series:
- Two Words: Compound Interest @ PoorerThanYou.com
- Delay Gratification To Succeed @ GatherLittleByLittle.com
- Living On A Budget Isn’t An Option @ TotalCandor.com
- Credit Cards Will Steal Your Lunch Money @ PTMoney.com
- Should You Earn A College Degree @ TheDigeratiLife.com
- Spend Money Based On Needs Not Wants @ MoneyNing.com
- There Is More Free Money Than You Realize For College @ FreeFromBroke.com
- Living On Your Own Isn’t Cheap @ Studenomics.com
- Taxes Are A Necessary Evil In Life @ MoneySmartLife.com
- Do What You Love, Love What You Do @ GenXFinance.com
- Don’t Be A Tightwad: Give Generously @ CashMoneyLife.com
(photo: pfala)
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When I was young I received a dollar and tried to plant it to make my own money tree. It didn’t work. Who am I kidding, I did that last week.
The metaphor does work if you plant a dollar (invest it) and wait for it to grow.
Good post, I’ll need to read the rest of the series.
Very true and the earlier you plan it, the bigger the tree can be when you need to chop it down to build your own house.
Ahhh analogies!
It’s so important to build good money habits and respect for money early on. It’s not easy mind you, but important! If I only knew then what I know now….
This is one very important lesson that I think needs to be taught to all children. That money doesn’t just get handed to you, you have to do some work in order to receive the rewards.
I love that Grant had a lawn-mowing business when he was young! I think more kids should do things to earn their money directly. I had a newspaper that I wrote and sold around my town when I was six, until the time I was twelve! I didn’t make huge amounts of money with it, but I learned a ton, and the money seemed like a lot to me! I even had my friends work as paid reporters for the “Kids Gazette.” It was great fun, and I encourage all kids and teens to pursue their own small businesses, because you learn so much from it.
That’s so clever, do you still have any copies left?
Oh, I most certainly do! I don’t have a copy of every issue, but I do have the ones from 1996-1998. In fact, somewhere, someplace… the old Microsoft Publisher files still exist on floppies!
I should really scan those things in, they’re a hoot to read now!
That’s so true, money doesn’t grow on trees. And a good point to learn.
I’m really enjoying this series. Check out my Q&A with BrokePiggy’s Grant Baldwin (not officially part of the series, but if you’re interested in his story and why he started BrokePiggy, check it out) http://www.hereverycentcounts.com/2009/04/broke-piggy-teaches-teens-about-money.html
Yep, teach them to earn and save from a young age. Even if it’s not for the money, but for the discipline and principle of it. It’ll be invaluable for the rest of their lives.
Thanks for your involvement in this series Jim!
In school today, my son was learning about Chamberlain’s appeasement of handing over the Sudetenland. I told him that appeasement doesn’t work, it just sets you up for the next larger appeasement. Which is why I never cave in to my kids, no matter how much they whine. It just sets me up for a bigger score the next time.
This is a great post. I like how you took real world concepts that all of us are dealing with and adapted them to children.
Some great strategies here and the hardest one is that notion of telling your kids no. It’s hard to say no when they want to go out with friends but it’s important to keep them fiscally smart.